Torrent Power (BOM:532779) Inventory Turnover : 4.90 (As of Dec. 2023)

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What is Torrent Power Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Torrent Power's Cost of Goods Sold for the three months ended in Dec. 2023 was ₹47,835 Mil. Torrent Power's Average Total Inventories for the quarter that ended in Dec. 2023 was ₹9,767 Mil. Torrent Power's Inventory Turnover for the quarter that ended in Dec. 2023 was 4.90.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Torrent Power's Days Inventory for the three months ended in Dec. 2023 was 18.63.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Torrent Power's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.15.

Torrent Power Inventory Turnover Historical Data

The historical data trend for Torrent Power's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Torrent Power Inventory Turnover Chart

Torrent Power Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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16.91

14.59

14.83

19.87

29.34

Torrent Power Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															5.27	6.40	6.87	5.34	4.90

Torrent Power Inventory Turnover Calculation

Torrent Power's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	199169.8	/ (	(5375.7	+	8202.8)	/	2 )
=	199169.8	/	6789.25
=	29.34

Torrent Power's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	47835.3	/ (	(9767.4	+	0)	/	1 )
=	47835.3	/	9767.4
=	4.90

Torrent Power (BOM:532779) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Torrent Power's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	9767.4	/	47835.3	*	365 / 4
	=	18.63

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Torrent Power's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	9767.4	/	63660.9
	=	0.15

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Torrent Power Inventory Turnover Related Terms

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Torrent Power (BOM:532779) Business Description

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GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Torrent Power Ltd (BOM:532779) » Definitions » Inventory Turnover

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TORNTPOWER:India

Address

Samanvay, 600, Tapovan, Ambawadi, Ahmedabad, GJ, IND, 380015

Website

https://www.torrentpower.com

Torrent Power Ltd is an Indian utility company engaged in the business of power generation, transmission, and distribution. Both by itself and through its subsidiaries, Torrent Power operates a portfolio of gas, combined cycle, coal, wind, and solar power plants. The company's gas-fired facilities constitute most of its energy-producing capacity. Torrent Power generates the vast majority of its revenue from the supply of power generated by its facilities and transmitted through its power grids to areas of Western and Northern India. Its sales are fairly evenly divided among residential, commercial, low tension and high tension consumers. The low tension customer class would include smaller manufacturing units, while high tension would be composed of heavier industrial entities.

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